Processed Fish Industry Profile

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I. INTRODUCTION

Fish and fishery products are extremely consumable merchandise. After catch, these goods cannot be held for long and have to be marketed as fast as possible to prevent deterioration. Fish processing plays an important role in the fish industry. Processing transforms a perishable product like fish, into a more constant and long-lasting product. Since processing changes the product form, this adds value to the product.

Raw fish and other fishery products are processed into canned tuna, canned sardines, bottled Spanish sardines, fish balls, tempura, bagoong gata, ginamus, fish sausage, fish embutido, sundried fish, smoked fish, fish oil,  pet food, and fish meal, to name a few.

The demand for basic commodities increased with the significant growth of the Philippines populace. The requirement for fish, both for food consumption and other uses, has increased equally. Thus, many of the households from the coastal villages have made fishing as their source of livelihood. Also, the demand for processed fish products is stable and is expected to increase every year.

Zamboanga Peninsula has a great number of fishing grounds.  Thus, the region is also known as the “Sardines Capital of the Philippines. It also supplies 80% of the total domestic requirement for canned sardines and accounts for 70% share of domestic market for dried fish. Also, based on industry source, employment of this industry is approximately 35,000 workers excluding those in the allied industries such as trucking, shipping, stevedoring, packing/packaging, ice plants and cold storage.

Majority of the fish processors are located in Zamboanga City and Zamboanga Del Norte. There are twelve (12) canning factories, sixteen (16) bottled sardines processors, ten (10) allied fish processors, four (4) tin cans manufacturers and 104 dried fish processors. In the course of generation, the fishing industry technology has improved. More and more municipal fishing boats became motorized. Many commercial fishing vessels became bigger and more powerful. Fishing gears have developed from a simple tool to highly sophisticated fishing gadgets that could sweep the bottom of the fishing grounds of almost everything, including the precious coral reefs.

In 2007, The Philippines is among the top fish producers in the world. According to the Food and Agriculture Organization (FAO), the Philippines was listed as No. 8 from its previous ranking of No. 11 among the top fish producing countries in the world. In 2010, the Bureau of Agricultural Statistics recorded a total fish production of the Philippines to more than 5 million metric tons. All sub-sectors have managed to outdo their 2009 production performance. Zamboanga Peninsula is still the number one commercial fish producing region in the Philippines up to this year. In 2010, Zamboanga City topped the highest total volume for fish production in Zamboanga Peninsula with 377,919.42 MT followed by Zamboanga Sibugay, Zamboanga del Sur and Zamboanga del Norte.

II. INDUSTRY SITUATION AND PERFORMANCE

PRODUCTION VOLUME

Table 1 - Regional Distribution of Fish Production by Sub-Sector 2009 - In Metric Tons

REGION	TOTAL	Rank	Commercial	Rank	Municipal	Rank	Aquaculture	Rank
PHIL	5,084,520.25	-	1,258,975.07		1,348,153.15		2,477,392.03
NCR	73,854.52		67,551.54		4,166.24		2,136.74
CAR	4,228.72		-		940.21		3,288.51
1	137,357.46		5,052.39		49,790.13		82,514.94
2	63,463.37		15,676.64		32,450.82		15,335.91
3	272,113.90		5,873.27		41,950.71		224,289.92	4
4-A	414,887.87	5	81,886.87	5	122,145.01	5	210,855.99	5
4-B	720,734.55	3	44,850.25		219,386.03	1	456,498.27	2
5	273,563.45		65,364.23		139,165.34	3	69,033.88
6	433,230.56	4	109,158.74	3	168,936.60	2	155,135.22
7	233,765.08		47,205.60		54,727.20		131,832.28
8	206,830.88		71,694.09		95,301.09		39,835.70
9	732,145.86	2	357,429.35	1	127,082.97	4	247,633.54	3
10	155,525.19		45,983.43		42,392.12		67,149.64
11	66,664.78		11,473.75		26,586.35		28,604.68
12	304,821.10		230,714.89	2	48,645.63		25,460.58
Caraga	103,656.61		6,676.21		70,380.89		26,599.51
ARMM	887,676.35	1	92,383.82	4	104,105.81		691,186.72	1

Source:BAS-DA

Table 2 - Regional Distribution of Fish Production by Sub-Sector 2010 - In Metric Tons

REGION	TOTAL	Rank	Commercial	Rank	Municipal	Rank	Aquaculture	Rank
PHIL	5,162,001.80		1,247,761.33		1,370,520.13		2,543,720.34
NCR	98,333.19		91,761.40		4,343.13		2,226.66
CAR	3,534.22		-		915.49		2,618.72
1	137,770.57		3,981.17		42,802.22		90,987.18
2	62,170.73		16,086.96		33,810.95		12,272.82
3	264,679.04		4,335.78		40,559.61		219,783.65	4
4-A	413,213.19	5	85,112.49	5	127,190.28	5	200,910.42	5
4-B	726,498.19	3	47,980.27		211,880.18	1	466,637.73	2
5	290,621.79		68,978.69		147,532.97	3	74,110.13
6	441,557.87	4	105,000.13	3	170,911.90	2	165,645.84
7	240,648.48		44,608.53		55,447.56		140,592.39
8	209,109.33		68,499.18		100,845.75		39,764.40
9	757,214.34	2	339,749.11	1	136,066.81	4	281,398.42	3
10	160,601.08		43,564.72		43,338.77		73,697.59
11	68,867.28		12,778.41		28,085.41		28,003.46
12	281,721.95		211,020.04	2	46,249.04		24,452.87
Caraga	101,189.70		7,221.67		69,069.02		24,899.01
ARMM	904,270.87	1	97,082.78	4	111,471.03		695,717.06	1

Source:BAS-DA

Data on table 1 and 2 showed that the top five producing regions have maintained their position. The Autonomous Region of Muslim Mindanao (ARMM) followed by 9, 4-B, 6 and 4-A. For commercial fishing, Region 9 top the list trailed by Region 12, 6, ARMM and 4-A. The first five in municipal fishing are Region 4-B, 6, 5, 9 and 4-A. In the aquaculture sector, ARMM lead and followed by Region 4-B, 9, 3 and 4-A.

 

Chart 1: Total Fish Production 2006-2010 (In metric tons) Zamboanga Peninsula

Source: BAS-DA

Above table shows that fish production has improved from 2006 to 2010.  Based on the BAS report, the fish production in Zamboanga Peninsula went up by a slight increase which contributed to the country’s total output expansion.  The average total fish production in Zamboanga Peninsula from 2006 to 2010 is 663,851.94 metric tons.  Heavy unloading of Indian sardines was noted in Zamboanga City during the second quarter of 2009. The growth was mainly attributed to the increased demand from canning factories in Zamboanga City.

 

Chart 2: Fish Production by Province Zamboanga Peninsula 2009-2010 (In metric tons)

Source: BAS IX-DA

From 2009 to 2010, the City of Zamboanga topped the highest in terms of the volume of production among the areas in Region 9 although there was a slight decrease in 2010 from 2009 with 396,918 metric tons and then followed by Zamboanga Sibugay has improved its production from 144,594 to 169,320 metric tons. Zamboanga del Sur has declined from 126,421 metric tons to 114,960 metric tons while Zamboanga del Norte increased its output from 64,210 to 95,024 metric tons.

Table 3 - Zamboanga Production of Sardines in MT

Tuna Species	2006	2007	2008	2009	2010
Indian Sardines	93,753.68	81,986.86	115,418.96	209,012.35	207,322.99
Frimbriated Sardines	4,365.15	5,824.93	19,744.16	27,931.50	9,090.28

Source: BAS Online

Table 4 - Zamboanga Peninsula -Tuna Production in Metric Ton

Tuna Species	2006	2007	2008	2009	2010
Frigate Tuna	15,059.52	16,385.55	13,618.76	10,423.94	12,394.04
Yellow Fin Tuna	6,168.24	5,380.10	5,522.35	9,821.50	11,083.20
Skipjack	19,188.00	29,835.10	8,716.30	12,819.37	9,010.58
Eastern Little Tuna	18,309.86	14,196.38	20,215.64	16,802.92	5,471.98
Big eye Tuna	2,527.83	1,990.50	5,576.99	434.58	1,283.42

Chart 3: Philippine Fishery Production by Fishing Type (In metric ton) 2008-2010

Source: BAS Online

Chart 4 Fisheries: Philippines Percent Distribution of Production by Sector 2010

Source: DA-BAS online

The aquaculture production accounted for 49 percent or 2,543,720.34 metric tons to the total fisheries production in 2010. 

Chart 5 : Fishery Production by Fishing Type (Zamboanga Peninsula) (in metric ton) 2010

Source: BAS

In the regional level, the commercial fishing topped the biggest share of fishery production unlike in the national level which it is occupied by the aquaculture sector. The volume of commercial fishing in Zamboanga Peninsula posted at 339,749.11 metric tons in 2010.

Table 5 - Monthly Production Capacity:       

Product	In MT	In Cases
Canned Tuna	1,325	240,000
Sardines (Canned)	6,113	590,000
Sardines (Bottled)	563	12,000
Dried Fish	40,000	-

 

INDUSTRY PLAYERS

12 Canning factories

34 Bottled sardines (only 25 are active)

104 Dried fish processors

10 Establishments in the allied industries

4 tin cans manufacturers

4 Industry Associations

20 Commercial fishing operators

 

A. List of Canning Factories in Zamboanga City

1. Ayala Seafoods Corporation / Mega Seafoods Corp.	Calle Segundo, Ayala, Zamboanga City / Canelar Moret, Zamboanga City
2. Atlantic Foods Corporation	Talisayan, Zamboanga City
3. Columbus Seafoods Corporation	Talisayan, Zamboanga City
4. Grant Foods Corporation	Baliwasan Seaside, Zamboanga City
5. Kimson Foods Corporation	Baliwasan, Zamboanga City
6. Permex Producers and Exporters Corporation	Ayala, Zamboanga City
7. Seacoast Top Choice Corporation	Sangali Fishing Port, Zamboanga City
8. Universal Canning Incorporated	Calle San Isidro, Ayala, Zamboanga City
9. Young Town (Maunlad) Fortune Group Corporation	Recodo, Zamboanga City
10. Aquatic Manufacturing Corporation	Recodo, Zamboanga City
11. Bigfish Food Corporation	Recodo, Zamboanga City
12. Goldstar Food Corporation	Talisayan, Zamboanga City

B. List of Bottled Sardines Processors

1. Mendoza Industries	Sicayab, Dipolog City
2. Dipolog School of Fisheries	Olingan, Dipolog City
3. Dipolog Bueno Food Processing Inc.	Gen. Luna St., Dipolog City
4. Tito Mike’s Food Company Inc.	Sicayab, Dipolog City
5. Montaño Foods Corporation	Turno, Dipolog City
6. Zaragoza Foods Corporation	Galas, Dipolog City
7. De Mari Food Products	Roxas, Zamboanga Norte
8. Etch Kiu Food Products	Turno, Dipolog City
9. Dipolog Seaside Women’s Association	Barra, Dipolog City
10. Tangkay Spanish Sardines	Turno, Dipolog City
11. Alenter Foods Incorporated	Katipunan, Zamboanga del Norte
12. Reg’8 Food Products	Sicayab, Dipolog City
13. CL Food Products	Esperanza Village, Dipolog City
14. Stephanie Sardines	Manukan, ZDN
15. Donex Food Products	Sicayab, Dipolog City
16. Bucana Fishermen MP Cooperative	Sicayab, Dipolog City
17. Bantayan Active Womens Association	Sindangan, ZDN
18. Cuenca Food’s Product	Roxas, ZDN
19. Issay International Foods	Dapitan City
20. Dapitan Food Products	Dapitan Agriculture Office
21. EJT Food Products	Baliwasan, Zamboanga City
22. ESPA Food Products	Sta. Maria, Zamboanga City
23. ROMMIX Food Products	Baliwasan, Zamboanga City
24. Yllana Bay Food Products	Tiguma, Pagadian City
25. YY Sea International	Mampang, Zamboanga City

C. List of Tin Can Manufacturers

1. General Metal Corporation

2. Oriental Tin Can & Metal Corp

3. Century Container Corp

4. Rowell Can Corporation

 

There are four (4) groups who are involved in the processed fish industry.  These groups are actively supported by various government and non-government agencies like DOST, DTI, DA, BFAR, RFTC, DENR, GEM and City Chambers.

In-glass Sardines of Dipolog Association – (ISDA)

Zamboanga City Canners Association

Industrial Group of Zamboanga Inc. (IGZI)

Southern Philippines Association of Deep Sea Fishing – (SOPHIL)

 

III. MARKET PRACTICES

Saltwater fish and other fishery products, after caught, are landed on fishing wharves and made ready to be distributed to different market points for further processing or direct retailing as raw products.

 

List of Landing Center in Zamboanga Peninsula

PROVINCE	DOCKINGCENTER
Zamboanga City	1. Hadji Taha Wharf
	2. Petron Bay Wharf
	3. Bengo 1 & 2 Wharf
	4. Tres Marias Wharf
	5. Paniran Wharf
	6. Arena Blanco Wharf
	7. Universal Wharf
	8. Mega Wharf
	9. AMR Wharf
	10. Labuan Wharf
	11. PFDA Wharf
	12. Pamingitan Wharf
Zamboanga del Sur	1. Pagadian Wharf
	2. Tukuran Wharf
	3. Margosatubig Wharf
Zamboanga del Norte	1. PFDA Wharf Dipolog
	2. Sindangan Wharf
	3. Liloy Wharf
Zamboanga Sibugay	1. Palid Wharf
	2. Naga Wharf
	3. Malangas Wharf

Processed fish such as canned sardines, canned tuna, bottled sardines, smoked fish and pet food find their way being exported. The international market gets a big share of the production of these processed fish.

 

EXPORT

PRODUCT                                  COUNTRIES

Canned Tuna                      USA, SOUTH AFRICA, CANADA, CHINA, MALAYSIA. TAIWAN, JAPAN, EUROPE, ISRAEL, UNITED 

                                               KINGDOM, SINGAPORE, DUBAI & ASIA

Canned Sardines              Malaysia, USA, New Guinea

Pet Food                              JAPAN, USA, SOUTH AFRICA

Fish Meal                             JAPAN, USA

Dried/Smoked Fish           JAPAN

Spanish Sardines             USA, CANADA, DUBAI, ITALY, GREECE GULF COORDINATING COUNTRIES

 

NEW MARKET

Romania; Dubai; Holland; Malta; Ireland; Russia; Poland; World Halal Markets

 

IV. INVESTMENT OPPORTUNITIES

Business opportunities in processed fish:

• cold storage facilities
• fish quality control laboratory
• shipbuilding/ ship repair facilities
• refrigerated containers (small scale)
• reefer vans
• fish processing plants
• fishpond operation (such as hatchery, nursery, nursery and grow-out ponds for high value species)

Facts about processed fish that attracts investment:

• Support of government agencies
• Support of universities specialized in Agricultural and Aquamarine sector
• Development of fish laboratories
• Conduct of Philippine Food Expo, Mindanao Food Expo and Tuna Congress
• Increasing demand of easy-to-prepare food product
• Demand for Halal food and meat substitutes because of increasing health consciousness

 

Source: Business Development Division, Department of Trade and Industry IX